Women's World Banking facts for kids
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| Founded | 1979 |
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| Founders | Esther Afua Ocloo, Ela Bhatt, Michaela Walsh |
| Legal status | 501(c)(3) |
| Focus | Low-income women |
| Headquarters | New York City, New York, U.S. |
| Method | Microfinance |
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President, Chief Executive Officer
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Mary Ellen Iskenderian |
Women's World Banking is a worldwide organization that helps women become more financially independent. It is a nonprofit organization, meaning it works to help people rather than make money. The group focuses on giving women access to financial services like small loans. This helps them start businesses and improve their lives.
Contents
What is Women's World Banking's Goal?
The main goal of Women's World Banking is to help women with lower incomes. They want to increase women's money, their involvement in the economy, and their power. They do this by helping women get financial services, learn new things, and reach markets. This support also helps the women's families and communities.
How Women's World Banking Started
Women's World Banking began with an idea at the first World Conference on Women. This big meeting happened in Mexico City in 1975. It was part of the "UN Decade for Women," which focused on women's progress.
The Idea Behind the Organization
At the conference, a group of ten women from different parts of the world realized something important. They saw that if women had their own money, they could make better choices. This would help them with their education, opportunities, and overall well-being. Giving small loans and other financial help to poor women who wanted to start businesses seemed like a strong way to fight poverty.
Founders of Women's World Banking
Women's World Banking was officially started in 1976 by several women leaders. These included:
- Michaela Walsh: She was the first woman manager at Merrill Lynch International. She became the organization's first president.
- Ela Bhatt: She started SEWA, a large union for women workers in India.
- Esther Ocloo: She was a top businesswoman from Ghana. She believed women were key to economic growth. She was the first chairperson of WWB's Board of Directors.
Ela Bhatt said their goal was to help women who couldn't get help from regular banks. They wanted to bring these women into the main economy.
Growth and Leadership Changes
In 1979, Women's World Banking became an official organization in the Netherlands. Its goal was to give women business owners money and information. This would help them join their country's economy and build successful businesses.
In 1991, Nancy Barry became the second president. She helped the organization grow to include major banks. These banks found new ways to offer financial services to people with low incomes. During her time, the network helped nearly 20 million low-income business owners.
Mary Ellen Iskenderian became the third president in 2006. She has led the organization for over 15 years.
Support from Important Figures
In 2009, former U.S. President Barack Obama spoke about his mother, Ann Dunham-Soetoro. She worked at Women's World Banking in the mid-1990s. He said she helped create the idea of microloans. These small loans have helped millions of people escape poverty. Her work also helped shape policies for the United Nations Fourth World Conference on Women in Beijing in 1995.
Why Focus on Women?
At first, many microfinance groups helped both men and women. They aimed to give loans to poor business owners who didn't have assets like property. This problem still affects many women today.
The Multiplier Effect
Research showed that giving small loans to women had a bigger, longer-lasting effect. It helped the whole community. When women had access to money, they gained more control over their household. They also had more power to make decisions and take part in public life.
Helping women financially had a "multiplier effect." This means that the benefits spread widely. Studies showed that poor women invested more of their income back into their families and communities. They used the money for things like healthcare, their children's education, and improving their homes. This idea—that helping women helps everyone—became a key part of microfinance. It showed how microfinance could fight poverty.
Tailored Services for Women
Because of this multiplier effect, Women's World Banking has always focused on helping women. They do research on how families make financial decisions. This research has led to important changes, such as:
- Simpler paperwork: Loan forms are easier to understand. This helps women in countries where fewer women can read.
- Better branch design: Microfinance offices are designed to be comfortable for women with small children.
- Housing loans: For families to get a housing loan, the woman's name must be on the property title.
What Services Does Women's World Banking Offer?
As microfinance has grown, Women's World Banking has developed new services. These include:
- Savings accounts
- Microfinance loans (small loans)
- Loans for housing or home improvements
- Individual loans
- Financial services for people in rural areas
Women's World Banking also helps its network members. They offer advice and technical support. This includes research, help with branding, and leadership training.
How the Network Works
Women's World Banking itself does not give loans directly to people. Instead, it works with its member organizations. These members are in different markets across five regions:
- Africa
- Asia
- Eastern Europe
- Latin America and the Caribbean
- Middle East and North Africa
In 2009, the network had over US$5.5 billion in outstanding loans. The average loan size was about $1,200.
Recognized for Success
In 2007, ten members of the Women's World Banking network were named among the top 50 microfinance organizations by Forbes magazine.
In 2009, thirteen network members were on the Global 100 Composite Ranking. This list highlights organizations that reach many people and have low costs. They are also profitable and open about their work.
Women in Leadership
Women have been important leaders in microfinance since it began. Many of the first people to work in this field were women. A strong group of women managers has remained as microfinance organizations grew.
Benefits of Women Leaders
Having women in leadership roles in microfinance is good for business. Organizations that hire, keep, and promote women often do better financially. A 2007 report showed that large companies with more women on their boards had better financial results. Another study in 2007 looked at 226 microfinance organizations. It found that when a woman was the CEO, the organization earned more money and had lower costs. A 2008 survey by Women's World Banking also showed that female loan officers and women in charge were great role models for their female customers.
Challenges for Women Leaders
Between 2004 and 2008, the microfinance industry grew very quickly. However, research showed a decline in women in leadership roles within Women's World Banking member organizations. From 2003 to 2007, the percentage of women on boards dropped from 66% to 58%. In senior management, it fell from 66% to 51%.
Center for Microfinance Leadership
In 2009, Women's World Banking started the Center for Microfinance Leadership. This center helps train leaders with the right skills and values. They learn to balance financial success with helping people escape poverty. The center works with the Wharton School of the University of Pennsylvania. It offers leadership programs, coaching, and exchanges for people working in microfinance. It also has programs to increase the number of women in leadership and develop management talent.
Microfinance Today
Balancing Profit and Purpose
In 2008, Women's World Banking studied how pressure to make money affects the goal of helping people. The study found that when microfinance organizations became more focused on profit, fewer women were served. The percentage of women helped dropped from 88% to 60%. Also, the average loan sizes became two to three times larger. This might mean fewer loans went to women, as women often borrow smaller amounts.
Mary Ellen Iskenderian said it's important that women still get access to microfinance as organizations grow. She noted that for 30 years, data has shown that women use more of their loans for education, healthcare, and food. Their children also stay in school longer and live longer.
How Microfinance Helps Lives
In 2010, some questions were raised about whether microfinance truly improved borrowers' lives. Women's World Banking and other microfinance groups responded. They pointed out that many studies were based on short-term information. Also, studies often don't look at small, gradual changes. For example, a family might change their roof from cardboard to metal. This is a small step but a big improvement. Many experts believe that having access to financial services brings stability to lives that are often very uncertain.
See also
In Spanish: Banco Mundial de las Mujeres para niños
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Women's World Banking Logo
